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March 30, 2020
2020-0780

Ohio grants waiver of penalty for UI returns filed late due to COVID-19

Employers unable to file their first quarter 2020 state unemployment insurance (UI) return and pay the corresponding payment due to COVID-19 reasons will not be penalized under an emergency order recently issued by Ohio Governor Dewine. (Executive Order 2020-03D.)

Employers affected by the COVID-19 pandemic will need to request a penalty waiver (referred to the Department as a forfeiture) if filing the first quarter 2020 UI report and payment late. Go here for Form JFS 20132 or go to the Ohio Department of Job and Family Services's electronic filing system (ERIC) to file the waiver request online.

The Governor's order and the Department's announcement do not mention a waiver of interest for the late payment of first quarter 2020 UI taxes. According to a Department representative, interest will accrue on the tax balance for employers unable to timely pay the quarterly tax due. However, the form does provide the ability to also request a waiver of interest.

Go here for an explanation of the Department's procedures for typical late filing and payment.

Because the report is used to calculate benefits for affected workers, the Department urges employers to file the return on time, if at all possible, throughout the state of emergency, even if unable to pay the unemployment tax timely. Quarterly returns must be filed online and payments made over the ERIC system.

Ohio will soon have a new unemployment insurance system: The SOURCE (State of Ohio Unemployment Resource for Claimants and Employers). The SOURCE will provide a user-friendly, self-service experience, tailored to meet the needs of employers and claimants alike. It's planed that employers and agents will start using The SOURCE in 2020 and claimants will begin using it in 2021. For more information, click here.

See the Department website for more information regarding the Department's response to COVID-19.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Peter Berard (Peter.berard@ey.com)

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